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True if you buy a car in a private sale. But if you buy a car from a regulated professional dealer and it turns out to be stolen then things get a little bit more complicated than just you have to give it back. I would expect in that situation that the dealer makes everyone good (and possibly goes to prison).

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This isn't my understanding of how it works. I thought that if you bought a stolen car from a dealership, the police could still tow the car and give it back to the rightful owner. You would get your money back, and you would sue the seller if necessary. I don't see how buying from a dealership makes this any different, except a dealership is easier to sue and recover damages from.

You mean like how Madoff went to prison

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